Exhibit 99.1

                    

GCI REPORTS THIRD QUARTER 2014 FINANCIAL RESULTS
Consolidated Revenues of $241 million, Adjusted EBITDA of $93 million
Representing Record Quarterly EBITDA Performance
November 5, 2014, Anchorage AK - General Communication, Inc. ("GCI") (NASDAQ:GNCMA) today reported performance for the third quarter of 2014, with consolidated revenues of $241 million, adjusted EBITDA of $93 million, and net income of $13 million or $0.30 per share.
Consolidated revenues of $241 million increased seven percent on a sequential basis and increased 11 percent on a year-over-year basis. Adjusted EBITDA of $93 million represented a 10 percent increase on a sequential basis and an 18 percent increase on a year-over-year basis. This record performance was driven by extraordinary political advertising and sustained strength in wireless roaming.
On a year to date basis, consolidated revenues were $681 million, representing a 15 percent increase over the same period in 2013. Adjusted EBITDA was $252 million, a 27 percent increase over the same period last year. Net income was $23 million or $0.55 per share, a 40 percent and a 41 percent increase over the same period last year, respectively.
“This past quarter was one of extraordinary financial performance, with record revenue and EBITDA performance being driven by wireless roaming and unusually high political advertising," said Ron Duncan, GCI president and chief executive officer. "With our strong financial performance, we were able to continue to invest for the future while simultaneously reducing our debt. Investments during the quarter were made in our wired broadband product for the ‘March to a Gig’, our LTE deployment, the TERRA project for rural Alaska and continued improvements in customer service operations. These are all important components of our commitment to meet the competitive challenges in the marketplace and provide superior service to our customers.”
Important Notes
It should be noted that both Wireless and Wireline segment results are materially affected by The Alaska Wireless Network ("AWN") transaction, which was effective July 23, 2013. Thus, third quarter year-over-year comparisons should take into account the partial quarter of AWN results in 2013.
Also, under the AWN operating agreement, each partner is allowed to receive certain reimbursements for customer equipment, commonly known as "handset subsidies," according to a schedule for qualified devices. GCI elected not to seek any handset subsidies in the third quarter of 2013, and reversed the preliminary subsidies booked. This decision was made due to internal system limitations on tracking the subsidies with the level of precision required. GCI resumed seeking handset subsidies in the second quarter of 2014. There was no net financial impact, but rather a shift of EBITDA between segments.




Operating Highlights
Wireless:
The Wireless segment, reflecting the results of AWN, posted revenues of $76 million, a 10 percent increase on a sequential basis, and a 16 percent increase on a year-over-year basis, reflecting strong roaming and backhaul revenue. Wireless adjusted EBITDA for the period was $47 million, reflecting an 18 percent increase on a sequential basis. This large increase is a continuation of strong seasonal roaming and backhaul demand. Adjusting for the handset subsidy issue described above, the pro forma adjusted EBITDA growth year-over-year would be 27 percent.
This adjustment can be seen in the following table:
($ millions)
3Q 2014
3Q 2013
2Q  2014
Wireless Reported EBITDA
47
42
40
Wireless Reported Subsidy to Wireline
6
0
5
Wireless Adjusted EBITDA without Subsidy
53
42
45
Normalized Subsidy
6
5
5
Wireless Pro Forma Adjusted EBITDA
47
37
40
For the third quarter of 2014, the wireless revenue detail was as follows:
($ millions)
3Q 2014
3Q 2013
2Q  2014
Wholesale Wireless
25
22
25
Roaming and Backhaul
38
31
30
USF Support
13
13
14
Total Wireless Revenue
76
66
69
Note that third quarter 2013 revenues have been restated to reflect a reclassification of certain items from cost of goods sold to contra revenues.
Wireline:
The Wireline segment posted revenues of $164 million, a six percent increase on a sequential basis and eight percent on a year-over-year basis. Adjusted EBITDA for the segment was $46 million, representing a four percent increase on a sequential basis. Removing the handset subsidy reversal in the third quarter of 2013 would result in a pro forma adjusted EBITDA growth of 12 percent on a year-over-year basis.




This adjustment can be seen in the following table:
($ millions)
3Q 2014
3Q 2013
2Q  2014
Wireline Reported EBITDA
46
36
44
Reported Subsidy from Wireless
6
0
5
Wireline Adjusted EBITDA without Subsidy
40
36
39
Normalized Subsidy
6
5
5
Wireline Pro Forma Adjusted EBITDA
46
41
44
Wireline - Consumer:
Consumer revenues for the third quarter of 2014 were $73 million, a six percent increase on a sequential basis and a five percent increase on a year-over-year basis. Growth in the revenues for the quarter and year were driven by a consumer shift to higher performance cable modem plans.
Following are the Wireline - Consumer key operational metrics:
Cable modem subscribers were up 2,200 or two percent on a year-over-year basis, and up 1,400 or one percent on a sequential basis.
While basic subscribers dropped 2,500 or two percent on a year-over year-basis, the number of HD/DVR converter boxes were up 13,500 or 15 percent, driven in part by the success of TiVo. On a sequential basis, basic subscribers were essentially flat, with the number of HD/DVR converter boxes up 2,200 or two percent.
Non-Lifeline wireless lines in service were up 5,500 or 6 percent on a year-over-year basis, and up 3,600 or four percent on a sequential basis.
Video ARPU was up $2.58 or three percent on a year-over year-basis, and up $3.73 or five percent on a sequential basis.
Wireline - Business Services:
Business Services revenues for the third quarter of 2014 were $60 million, an eight percent increase on a sequential basis and an 11 percent increase on a year-over-year basis. The quarter’s growth in this customer group has been driven by political advertising revenue, offsetting the year-over-year decline in Professional Services revenue. Professional Services revenue was especially high in 2013, and has declined by comparison, though the Company does anticipate growth in the coming quarters.
Data and Professional Services revenues can be better understood by the following detail:
($ millions)
3Q 2014
3Q 2013
2Q  2014
Data Transport and Storage
25
25
25
Professional Services
12
14
11
Total Data Revenue
37
39
36




Following are the Wireline - Business Services key operational metrics:
Cable modem subscribers were up 200 or one percent on a year-over-year basis, and flat sequentially.
Non-Lifeline wireless subscribers were up 700 or four percent on a year-over-year basis, and up 100 or one percent on a sequential basis.
Wireline - Managed Broadband:
Managed Broadband revenues for the third quarter of 2014 were $32 million, a three percent increase sequentially, and a seven percent increase on a year-over-year basis. This positive performance is driven by the significant investments we have made and are continuing to make in the TERRA network. Specifically, ConnectMD and School Access have proven to be a continued source of growth.
Accomplishments and Milestones
AWN signed the nation’s first LTE roaming partnership with a national domestic operator.
The iPhone 6 and iPhone 6 Plus were launched on September 26th.
Also on the wireless front, AWN received top marks on an independent drive test in Juneau, outperforming competitors in several areas including average 4G LTE download speeds. AWN currently has 104 LTE sites throughout Alaska, and expects to bring on approximately 100 new LTE sites over the next two quarters.
GCI's premiere data service, re:D, had its speed increased to 250 mbps. re:D is currently available in six markets, and GCI has announced the addition of two more markets that will receive gigabit data service in Alaska.
On the video front, GCI strengthened its customer offerings by bringing TiVo service to two new markets and added several new networks on GCI GO (TV Anywhere access).
GCI’s TERRA NW project to bring terrestrial broadband service to rural Northwest Alaska reached a milestone as the last of four mountaintop towers were commissioned. GCI expects to begin migrating Kotzebue traffic onto TERRA by the end of the year.
Cash expenditures for property and equipment have totaled $125 million year to date, which includes $19 million for the purchase of real estate, implying $106 million in core cash capital expenditures.
GCI paid down $66 million in debt during the quarter.
Guidance
While the quarter’s performance was extraordinary, and supported significant investments for future growth, the implications to financial guidance are modest. The Company is reaffirming the existing revenue guidance of $880 million to $900 million.




For earnings as measured by adjusted EBITDA, the Company had previously indicated that it expected to perform to the high end of the provided guidance of $285 to $305 million. At this time, however, GCI is revising the range upwards to $315 million to $325 million, reflecting the strong third quarter.
At this time, the Company is continuing its guidance for 2014 core cash capital expenditures of approximately $170 million, though it notes that there is a risk that it will come in less than that.
Conference Call
The Company will hold a conference call to discuss the quarter's results on Thursday, November 6th, at 2:00 p.m. (Eastern). To access the call, call the conference operator between 1:50-2:00 p.m. (Eastern) at 888-810-3139 (International callers should dial +1-312-470-7418) and identify your call as "GCI". In addition to dial-up access, GCI will make available net conferencing. To access the call via net conference, log on to gci.com and follow the instructions. A replay of the call will be available for 72-hours by dialing 800-925-2379, access code 7461 (International callers should dial +1-203-369-3515).
About GCI
GCI is the largest Alaska-based and -operated, integrated telecommunications provider, offering wireless, voice, data, and video services statewide. Learn more about GCI at www.gci.com/about.
Forward Looking Statement Disclosure
The foregoing contains forward-looking statements regarding GCI's expected results that are based on management's expectations as well as on a number of assumptions concerning future events. Actual results might differ materially from those projected in the forward looking statements due to uncertainties and other factors, many of which are outside GCI's control. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in GCI's cautionary statement sections on Forms 10-K and 10-Q filed with the Securities and Exchange Commission.

# # #








GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands)
 
 
 
 
September 30,
 
December 31,
ASSETS
2014
 
2013
Current assets:
 
 
 
Cash and cash equivalents
$
35,464

 
44,971

 
 
 
 
Receivables (including $33,867 and $28,000 from a related party at September 30, 2014 and December 31, 2013, respectively)
222,405

 
228,372

Less allowance for doubtful receivables
3,502

 
2,346

Net receivables
218,903

 
226,026

 
 
 
 
Deferred income taxes
36,253

 
39,753

Prepaid expenses
10,887

 
7,725

Inventories
7,952

 
10,347

Other current assets
106

 
230

Total current assets
309,565

 
329,052

 
 
 
 
Property and equipment in service, net of depreciation
969,265

 
969,578

Construction in progress
121,382

 
87,476

Net property and equipment
1,090,647

 
1,057,054

 
 
 
 
Goodwill
229,560

 
219,041

Cable certificates
191,635

 
191,635

Wireless licenses
86,347

 
91,400

Other intangible assets, net of amortization
65,173

 
71,435

Deferred loan and senior notes costs, net of amortization of $8,124 and $6,545 at September 30, 2014 and December 31, 2013, respectively
10,825

 
12,129

Other assets
54,937

 
40,061

Total other assets
638,477

 
625,701

Total assets
$
2,038,689

 
2,011,807

 
 
 
 




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
(Amounts in thousands)
 
 
 
 
September 30,
 
December 31,
LIABILITIES AND STOCKHOLDERS’ EQUITY
2014
 
2013
Current liabilities:
 
 
 
  Current maturities of obligations under long-term debt and
    capital leases
$
10,522

 
9,301

Accounts payable (including $8,621 and $11,200 to a related party at September 30, 2014 and December 31, 2013, respectively)
73,287

 
65,095

Deferred revenue
31,784

 
27,586

Accrued payroll and payroll related obligations
29,627

 
29,855

Accrued interest
21,293

 
7,088

Accrued liabilities
14,821

 
14,359

Subscriber deposits
1,166

 
1,326

Total current liabilities
182,500

 
154,610

 
 
 
 
Long-term debt, net
1,019,289

 
1,045,144

Obligations under capital leases, excluding current maturities
68,571

 
66,261

Obligation under capital lease due to related party, excluding
  current maturity
1,865

 
1,880

Deferred income taxes
160,799

 
161,476

Long-term deferred revenue
85,789

 
88,259

Other liabilities
37,581

 
36,823

Total liabilities
1,556,394

 
1,554,453

 
 
 
 
Commitments and contingencies
 
 
 
Stockholders’ equity:
 

 
 

Common stock (no par):
 

 
 

Class A. Authorized 100,000 shares; issued 38,343 and 37,299 shares at September 30, 2014 and December 31, 2013, respectively; outstanding 38,317 and 37,209 shares at September 30, 2014 and December 31, 2013, respectively
11,986

 
11,467

Class B. Authorized 10,000 shares; issued and outstanding 3,162 and 3,165 shares at September 30, 2014 and December 31, 2013, respectively; convertible on a share-per-share basis into Class A common stock
2,670

 
2,673

Less cost of 26 and 90 Class A common shares held in treasury at September 30, 2014 and December 31, 2013, respectively
(249
)
 
(866
)
Paid-in capital
30,965

 
26,880

Retained earnings
139,778

 
116,990

Total General Communication, Inc. stockholders' equity
185,150

 
157,144

Non-controlling interests
297,145

 
300,210

Total stockholders’ equity
482,295

 
457,354

Total liabilities and stockholders’ equity
$
2,038,689

 
2,011,807






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(Amounts in thousands, except per share amounts)
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
Non-related party
$
225,677

 
205,500

 
636,416

 
581,377

Related party
15,048

 
12,443

 
44,991

 
12,443

Total revenues
240,725

 
217,943

 
681,407

 
593,820

 
 
 
 
 
 
 
 
Cost of goods sold (exclusive of depreciation and amortization shown separately below):
 
 
 
 
 
 
 
Non-related party
73,971

 
69,606

 
212,821

 
199,915

Related party
2,930

 
2,077

 
8,236

 
2,077

Total cost of goods sold
76,901

 
71,683

 
221,057

 
201,992

 
 
 
 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
 
 
 
Non-related party
71,717

 
68,468

 
211,144

 
196,133

Related party
1,066

 
1,079

 
3,348

 
1,832

Total selling, general and administrative expenses
72,783

 
69,547

 
214,492

 
197,965

 
 
 
 
 
 
 
 
Depreciation and amortization expense
41,705

 
38,029

 
127,843

 
106,424

Operating income
49,336

 
38,684

 
118,015

 
87,439

 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
(17,848
)
 
(17,522
)
 
(54,229
)
 
(51,850
)
Other
(563
)
 
(180
)
 
(1,709
)
 
(230
)
Other expense
(18,411
)
 
(17,702
)
 
(55,938
)
 
(52,080
)
Income before income tax expense
30,925

 
20,982

 
62,077

 
35,359

Income tax expense
(2,481
)
 
(970
)
 
(2,823
)
 
(8,157
)
 
 
 
 
 
 
 
 
Net income
28,444

 
20,012

 
59,254

 
27,202

Net income attributable to non-controlling interests
15,932

 
11,107

 
36,466

 
10,873

Net income attributable to General Communication, Inc.
$
12,512

 
8,905

 
22,788

 
16,329

Basic net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.30

 
0.22

 
0.55

 
0.40

Basic net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.30

 
0.22

 
0.55

 
0.40

Diluted net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.30

 
0.22

 
0.55

 
0.39

Diluted net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.30

 
0.22

 
0.55

 
0.39

Common shares used to calculate Class A basic EPS
38,425

 
37,434

 
38,266

 
37,887

Common shares used to calculate Class A diluted EPS
41,734

 
40,776

 
41,575

 
41,319






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Third Quarter 2014
 
Third Quarter 2013
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
76,398

8,823

85,221

 
65,613

8,366

73,979

  Data

92,208

92,208

 

88,754

88,754

  Video

38,328

38,328

 

31,379

31,379

  Voice

24,968

24,968

 

23,831

23,831

    Total
76,398

164,327

240,725

 
65,613

152,330

217,943

 
 
 
 
 
 
 
 
Cost of goods sold
24,021

52,880

76,901

 
18,530

53,153

71,683

 
 
 
 
 
 
 
 
    Contribution
52,377

111,447

163,824

 
47,083

99,177

146,260

 
 
 
 
 
 
 
 
Less SG&A
5,336

67,447

72,783

 
4,702

64,845

69,547

Less other expense

560

560

 

195

195

    EBITDA
47,041

43,440

90,481

 
42,381

34,137

76,518

 
 
 
 
 
 
 
 
Share-based compensation

2,153

2,153

 

1,823

1,823

Accretion
238

121

359

 
117

61

178

Other

201

201

 

198

198

    Adjusted EBITDA
$
47,279

45,915

93,194

 
42,498

36,219

78,717





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Third Quarter 2014
 
Second Quarter 2014
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
76,398

8,823

85,221

 
69,397

7,149

76,546

  Data

92,208

92,208

 

88,475

88,475

  Video

38,328

38,328

 

34,478

34,478

  Voice

24,968

24,968

 

24,900

24,900

    Total
76,398

164,327

240,725

 
69,397

155,002

224,399

 
 
 
 
 
 
 
 
Cost of goods sold
24,021

52,880

76,901

 
23,500

48,882

72,382

 
 
 
 
 
 
 
 
    Contribution
52,377

111,447

163,824

 
45,897

106,120

152,017

 
 
 
 
 
 
 
 
Less SG&A
5,336

67,447

72,783

 
5,894

63,923

69,817

Less other expense

560

560

 

1,052

1,052

    EBITDA
47,041

43,440

90,481

 
40,003

41,145

81,148

 
 
 
 
 
 
 
 
Share-based compensation

2,153

2,153

 

2,193

2,193

Accretion
238

121

359

 
171

130

301

Other

201

201

 

829

829

    Adjusted EBITDA
$
47,279

45,915

93,194

 
40,174

44,297

84,471





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Nine Months Ended September 30, 2014
 
Nine Months Ended September 30, 2013
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
208,312

24,208

232,520

 
135,009

23,535

158,544

  Data

268,296

268,296

 

262,803

262,803

  Video

105,207

105,207

 

93,672

93,672

  Voice

75,384

75,384

 

78,801

78,801

    Total
208,312

473,095

681,407

 
135,009

458,811

593,820

 
 
 
 
 
 
 
 
Cost of goods sold
66,234

154,823

221,057

 
49,515

152,477

201,992

 
 
 
 
 
 
 
 
    Contribution
142,078

318,272

460,350

 
85,494

306,334

391,828

 
 
 
 
 
 
 
 
Less SG&A
17,188

197,304

214,492

 
13,771

184,194

197,965

Less other expense

1,709

1,709

 

142

142

    EBITDA
124,890

119,259

244,149

 
71,723

121,998

193,721

 
 
 
 
 
 
 
 
Share-based compensation


6,124

6,124

 

4,729

4,729

Accretion
585

376

961

 
237

223

460

Other

1,228

1,228

 

595

595

    Adjusted EBITDA
$
125,475

126,987

252,462

 
71,960

127,545

199,505









GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
WIRELINE SEGMENT SUPPLEMENTAL REVENUE SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Third Quarter 2014
 
Third Quarter 2013
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
7,989

834


8,823

 
7,581

785


8,366

  Data
28,755

36,857

26,596

92,208

 
24,981

39,229

24,544

88,754

  Video
27,896

10,432


38,328

 
27,674

3,705


31,379

  Voice
7,972

11,657

5,339

24,968

 
8,647

9,952

5,232

23,831

    Total
$
72,612

59,780

31,935

164,327

 
68,883

53,671

29,776

152,330

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Third Quarter 2014
 
Second Quarter 2014
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
7,989

834


8,823

 
6,360

789


7,149

  Data
28,755

36,857

26,596

92,208

 
27,313

35,554

25,608

88,475

  Video
27,896

10,432


38,328

 
26,871

7,607


34,478

  Voice
7,972

11,657

5,339

24,968

 
8,279

11,359

5,262

24,900

    Total
$
72,612

59,780

31,935

164,327

 
68,823

55,309

30,870

155,002

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2014
 
Nine Months Ended September 30, 2013
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
21,840

2,368


24,208

 
21,307

2,228


23,535

  Data
83,012

107,251

78,033

268,296

 
73,450

118,759

70,594

262,803

  Video
82,016

23,191


105,207

 
83,375

10,297


93,672

  Voice
24,696

34,757

15,931

75,384

 
27,318

35,532

15,951

78,801

    Total
$
211,564

167,567

93,964

473,095

 
205,450

166,816

86,545

458,811

 
 
 
 
 
 
 
 
 
 





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
September 30, 2014
 
 

 
as compared to
 
as compared to
 
 
September 30,
September 30,
June 30,
 
September 30,
June 30,
 
September 30,
June 30,
 
 
2014
2013
2014
 
2013
2014
 
2013
2014
Wireline Segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
117,000

114,800

115,600

 
2,200

1,400

 
1.9
 %
1.2
 %
Video
 
 
 
 
 
 
 
 
 
 
Basic subscribers
115,900

118,400

116,300

 
(2,500
)
(400
)
 
(2.1
)%
(0.3
)%
 
Digital programming tier subscribers
64,200

68,100

65,200

 
(3,900
)
(1,000
)
 
(5.7
)%
(1.5
)%
 
HD/DVR converter boxes
105,600

92,100

103,400

 
13,500

2,200

 
14.7
 %
2.1
 %
 
Homes passed
248,000

246,600

248,000

 
1,400


 
0.6
 %
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
55,900

62,800

57,700

 
(6,900
)
(1,800
)
 
(11.0
)%
(3.1
)%
 
Local access lines in service on GCI facilities
52,400

58,500

53,800

 
(6,100
)
(1,400
)
 
(10.4
)%
(2.6
)%
Business Services
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
14,200

14,000

14,200

 
200


 
1.4
 %
 %
Video
 
 
 
 
 
 
 
 
 
 
Hotels and mini-headend subscribers
19,800

19,800

20,600

 

(800
)
 
 %
(3.9
)%
 
Basic subscribers
1,900

2,000

2,000

 
(100
)
(100
)
 
(5.0
)%
(5.0
)%
 
Total basic subscribers
21,700

21,800

22,600

 
(100
)
(900
)
 
(0.5
)%
(4.0
)%
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
47,400

49,400

48,200

 
(2,000
)
(800
)
 
(4.0
)%
(1.7
)%
 
Local access lines in service on GCI facilities
34,200

34,800

35,000

 
(600
)
(800
)
 
(1.7
)%
(2.3
)%
Consumer and Business Services Combined
Wireless
 
 
 
 
 
 
 
 
 
 
Consumer Lifeline lines in service
25,600

29,600

28,200

 
(4,000
)
(2,600
)
 
(13.5
)%
(9.2
)%
 
Consumer Non-Lifeline lines in service
102,700

97,200

99,100

 
5,500

3,600

 
5.7
 %
3.6
 %
 
Business Services Non-Lifeline lines in service
18,600

17,900

18,500

 
700

100

 
3.9
 %
0.5
 %
 
Total wireless lines in service
146,900

144,700

145,800

 
2,200

1,100

 
1.5
 %
0.8
 %




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
September 30, 2014
 
 
Three Months Ended
 
as compared to
 
as compared to
 
 
September 30,
September 30,
June 30,
 
September 30,
June 30,
 
September 30,
June 30,
 
 
2014
2013
2014
 
2013
2014
 
2013
2014
Wireline segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Video
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
80.22

$
77.64

$
76.49

 
$
2.58

$
3.73

 
3.3
%
4.9
%
 
 
 
 
 
 
 
 
 
 
 
Combined Consumer and Business Services
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per cable modem subscriber
$
80.20

$
70.95

$
76.69

 
$
9.25

$
3.51

 
13.0
%
4.6
%
 
 
 
 
 
 
 
 
 
 
 
Wireless
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
50.87

$
49.22

$
48.89

 
$
1.65

$
1.98

 
3.4
%
4.0
%







General Communication, Inc.
 
 
 
 
 
 
 
 
Non-GAAP Financial Reconciliation Schedule
 
 
 
 
 
 
 
 
(Unaudited, Amounts in Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
June 30,
 
September 30,
 
September 30,
 
 
2014
 
2013
 
2014
 
2014
 
2013
Net income
 
$
28,444

 
20,012

 
19,068

 
59,254

 
27,202

Income tax expense
 
2,481

 
970

 
127

 
2,823

 
8,157

Income before income tax expense
 
30,925

 
20,982

 
19,195

 
62,077

 
35,359

 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
 
17,848

 
17,522

 
18,170

 
54,229

 
51,850

Other
 
563

 
180

 
1,049

 
1,709

 
230

Other expense
 
18,411

 
17,702

 
19,219

 
55,938

 
52,080

 
 
 
 
 
 
 
 
 
 
 
Operating income
 
49,336

 
38,684

 
38,414

 
118,015

 
87,439

Depreciation and amortization expense
 
41,705

 
38,029

 
43,786

 
127,843

 
106,424

Other
 
(560
)
 
(195
)
 
(1,052
)
 
(1,709
)
 
(142
)
 
 
 
 
 
 
 
 
 
 
 
EBITDA (Note 2)
 
90,481

 
76,518

 
81,148

 
244,149

 
193,721

Share-based compensation
 
2,153

 
1,823

 
2,193

 
6,124

 
4,729

Accretion
 
359

 
178

 
301

 
961

 
460

Other
 
201

 
198

 
829

 
1,228

 
595

Adjusted EBITDA (Note 1)
 
$
93,194

 
78,717

 
84,471

 
252,462

 
199,505

 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation, accretion expense, net income or loss attributable to non-controlling interests resulting from New Markets Tax Credit transactions, non-cash contribution adjustment, and other non-cash adjustments.
 
 
 
 
 
 
 
 
 
 
 
(2) Earnings Before Interest, Taxes, Depreciation and Amortization is the sum of Net Income, Interest Expense (including Amortization of Deferred Loan Fees), Interest Income, Income Tax Expense, and Depreciation and Amortization Expense. EBITDA is not presented as an alternative measure of net income, operating income or cash flow from operations, as determined in accordance with accounting principles generally accepted in the United States of America. GCI's management uses EBITDA to evaluate the operating performance of its business, and as a measure of performance for incentive compensation purposes. GCI believes EBITDA is a measure used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected EBITDA are used to estimate current or prospective enterprise value. EBITDA does not give effect to cash used for debt service requirements, and thus does not reflect funds available for investment or other discretionary uses. EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies.